Building your home

Home Building Costs in Nebraska

Building your dream home is an exciting endeavor, but it comes with its challenges, particularly in terms of costs and time investments. In Nebraska, the average home building cost ranges from $200,000 to $550,000, depending on various factors like property type, size, and customizations. However, it’s crucial to remember that this estimate doesn’t include expenses like land acquisition and permit fees. In this guide, we’ll break down the costs, considerations, and financing options for building a house in the Cornhusker State.

The Average Cost Breakdown

  1. Average Cost per Square Foot: In Nebraska, the average cost per square foot for building a house is approximately $105, excluding additional expenses such as land acquisition, permit fees, and excavations.
  2. Framing Lumber Expense: Framing a 2,000 sq. ft. home can cost around $33,000, according to Forbes Home. This highlights the significant contribution of materials like framing lumber to the overall construction costs.
  3. Factors That Can Increase Costs: Rising material prices, expensive labor, and supply chain disruptions can lead to an increase in house-building costs. It’s essential to factor in potential fluctuations when budgeting for your project.
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Home Building Financing Options

To embark on your home-building journey, you’ll need to consider financing options. Here are some common avenues:

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  1. Construction Loans: Work with a lender to secure a construction loan. Options like USDA construction loans and VA construction loans may also be available to you.
  2. Building on Owned Land: If you already own land, building on it can be more cost-effective, as you’ll only need to budget for the construction itself.

Buying vs. Building: Which Is Cheaper?

Generally, buying an existing home tends to be more affordable than building a new one in Nebraska. However, building your own home offers the advantage of a custom-designed living space tailored to your specific needs.

Average Costs by Square Footage

Here’s a breakdown of construction costs per square foot for varying home sizes:

  • 1,000 sq. ft.: $105,000
  • 1,500 sq. ft.: $157,500
  • 2,000 sq. ft.: $210,000
  • 2,500 sq. ft.: $262,500
  • 3,000 sq. ft.: $315,000

Costs in Popular Cities

Building costs in Nebraska can vary by city. Here’s a snapshot of average costs per square foot in popular cities/counties:

  • Omaha: $130
  • Nebraska City: $125
  • Lincoln: $168
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Hard and Soft Costs Breakdown for a 2,500 sq. ft. House

Hard Costs:

  • Material Costs: $147,500
  • Contractor(s) Charges (10% – 20%): $14,750 – $29,500
  • Electrical Costs: $7,500 – $12,500
  • Roof Installation Costs: $2,800 – $32,300
  • Plumbing Costs: $12,000
  • HVAC Installation Costs: $12,500

Soft Costs:

  • Land Cost: $5,000 Per Acre
  • Permit Costs: $5,000
  • Home Interiors: $20,000
  • Home Interior Designer Costs: $5,400

Financing Your Dream Home

Consider these financing options:

  • Construction-to-Permanent Loan
  • Construction-only Loan
  • Personal Loan
  • Home Equity Loan

Conclusion

Building a home in Nebraska is a significant undertaking, both in terms of time and finances. While it offers the benefit of a custom-designed space, it’s crucial to carefully weigh the costs and consider financing options. Whether you choose to build or buy, Nebraska offers a range of options for homeownership.

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